HSBC Holdings plc (NYSE:HSBC) Given Average Rating of "Hold" by Analysts

Key Points

• Analysts remain cautious: Twelve firms give HSBC an average “Hold” rating, comprising eight holds, three buys and one sell. Recent actions included downgrades from BNP Paribas Exane, Citigroup and Zacks Research.
• Quarterly results slightly exceeded expectations: HSBC reported earnings of $2.25 per share versus the $2.24 consensus estimate and revenue of $19.04 billion versus $18.66 billion expected.
• Shareholders will receive a dividend: HSBC declared a quarterly dividend of $0.50 per share, equivalent to $2.00 annually and a 1.9% yield, with payment scheduled for September 25.

Shares of HSBC Holdings plc (NYSE:HSBC - Get Free Report) have been given an average rating of "Hold" by the twelve research firms that are currently covering the firm, MarketBeat reports. One equities research analyst has rated the stock with a sell recommendation, eight have assigned a hold recommendation and three have assigned a buy recommendation to the company.

Several brokerages recently weighed in on HSBC. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating on shares of HSBC in a report on Tuesday, June 23rd. BNP Paribas Exane cut shares of HSBC from a "hold" rating to a "strong sell" rating in a report on Tuesday, August 4th. Citigroup lowered shares of HSBC from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 4th. Zacks Research cut shares of HSBC from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, May 5th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of HSBC in a research note on Monday, August 3rd.

HSBC Trading Down 0.1%

HSBC opened at $103.72 on Monday. The business has a fifty day moving average price of $98.79 and a 200 day moving average price of $91.81. The company has a debt-to-equity ratio of 0.67, a current ratio of 0.85 and a quick ratio of 0.92. HSBC has a 12 month low of $63.51 and a 12 month high of $107.92. The stock has a market capitalization of $356.45 billion, a price-to-earnings ratio of 14.71, a PEG ratio of 0.99 and a beta of 0.57.

HSBC (NYSE:HSBC - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The financial services provider reported $2.25 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.24 by $0.01. HSBC had a return on equity of 13.80% and a net margin of 18.19%.The company had revenue of $19.04 billion for the quarter, compared to analyst estimates of $18.66 billion. Sell-side analysts expect that HSBC will post 8.57 earnings per share for the current fiscal year.

HSBC Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, August 14th will be issued a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend is Friday, August 14th. HSBC's payout ratio is 28.09%.

Institutional Investors Weigh In On HSBC

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Morgan Stanley grew its holdings in shares of HSBC by 15.3% during the fourth quarter. Morgan Stanley now owns 7,483,883 shares of the financial services provider's stock worth $588,757,000 after purchasing an additional 993,473 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of HSBC by 1,272.2% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 909,464 shares of the financial services provider's stock valued at $71,548,000 after purchasing an additional 843,186 shares during the last quarter. Clearbridge Investments LLC boosted its position in shares of HSBC by 77.0% in the 4th quarter. Clearbridge Investments LLC now owns 1,443,716 shares of the financial services provider's stock valued at $113,577,000 after purchasing an additional 627,857 shares during the period. Renaissance Technologies LLC grew its stake in HSBC by 391.6% during the 1st quarter. Renaissance Technologies LLC now owns 524,122 shares of the financial services provider's stock worth $43,235,000 after buying an additional 417,500 shares during the last quarter. Finally, Fisher Asset Management LLC increased its position in HSBC by 2.3% during the fourth quarter. Fisher Asset Management LLC now owns 17,800,748 shares of the financial services provider's stock worth $1,400,385,000 after buying an additional 402,288 shares during the period. Institutional investors and hedge funds own 1.48% of the company's stock.

Key Headlines Impacting HSBC

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: Continued share buybacks: HSBC is advancing its August repurchase program with additional purchases in London and Hong Kong. Buybacks reduce shares outstanding and support earnings per share. HSBC Advances August Share Buy-Back With Further London and Hong Kong Purchases
• Positive Sentiment: Debt reduction through tender offers: HSBC bought back nearly $4.9 billion of 2028 notes in expanded cash tender offers. The move should reduce refinancing exposure and demonstrates active balance-sheet and capital management, although it uses liquidity. HSBC Buys Back Nearly $4.9 Billion of 2028 Notes in Expanded Tender
• Positive Sentiment: Investment in financial-services technology: HSBC Asset Management took an equity stake in London-based Model ML, an artificial-intelligence software company. The investment supports HSBC’s efforts to expand AI applications across financial services. HSBC backs AI financial services software firm Model ML
• Neutral Sentiment: India credit-card promotion: HSBC India will temporarily eliminate foreign-exchange markups on all credit cards beginning August 15. The offer could attract travel-focused customers and increase card usage, but waived fees may pressure near-term card revenue. HSBC India offers zero forex mark-up on all credit cards from August 15
• Neutral Sentiment: HSBC-branded funds posted gains: The HSBC Infrastructure Fund and HSBC Arbitrage Fund ranked among leading funds over the reported periods. This may support asset-management brand visibility, but the performance does not directly change HSBC’s consolidated earnings. HSBC Infrastructure Fund performance
• Negative Sentiment: Potential large shareholder sale: Multifield International Holdings is seeking authorization to dispose of a major HSBC shareholding. A sizable sale could create temporary supply pressure and signal reduced support from a large investor. Multifield Seeks Mandate for Major Disposal of HSBC Shareholding
• Negative Sentiment: Insurance leadership departure: HSBC’s global insurance business head, Moncreiffe, is reportedly leaving. The leadership change could create uncertainty around execution in the insurance division. HSBC global insurance business head departure

HSBC Company Profile

HSBC Holdings plc NYSE: HSBC is a multinational banking and financial services organization headquartered in London. It traces its origins to the Hongkong and Shanghai Banking Corporation, founded in 1865 to facilitate trade between Europe and Asia, and has since grown into one of the world's largest banking groups. The company is publicly listed in multiple markets, including the London Stock Exchange, the Hong Kong Stock Exchange and as an American depositary receipt on the New York Stock Exchange.

HSBC operates a universal banking model, serving retail, commercial, corporate and institutional clients.

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